Received a Tax Supplement Reminder? Handle It Soon — Late Fees Start July 1

The 2025 annual individual income tax settlement will end on June 30. Around this time, some taxpayers will receive notices from tax authorities reminding them that they may have unreturned or underreported income and need to pay supplementary taxes. How should taxpayers handle this? What consequences might they face if they delay or ignore it?

Taxpayers who receive a "tax supplement reminder" should verify the completeness of each income item individually.

According to data released by the State Taxation Administration, as of the end of May this year, over 160 million people have completed their 2025 annual tax settlement declarations. However, the end of the declaration period does not mean the tax verification work is finished. Li Ping, Deputy Director of the Institute of Tax Science under the State Taxation Administration, explained that during and after the annual settlement period, tax authorities will review the accuracy of taxpayers' declared information. If discrepancies are confirmed after verification, the competent tax authority will remind taxpayers to correct their materials or amend their declarations.

When tax authorities identify potential tax issues during routine monitoring, they typically send reminders to taxpayers via SMS, phone calls, or in-app messages through the individual tax app. Taxpayers who receive such reminders can log into the Natural Person Electronic Taxation Bureau or the individual tax app to verify each income item for completeness.

First, comprehensively verify income information. Focus on comprehensive income earned from multiple sources, including wages and salaries, remuneration for labor services, author's remuneration, and royalties, as well as any income items that may exist but are not shown in the system.

Second, carefully verify deduction items. Check each item one by one — children's education, continuing education, major medical expenses, housing loan interest, housing rent, support for elderly parents, and care for infants under 3 years old — to ensure the special additional deductions are accurately filled. Errors in reporting will directly affect the calculated tax amount.

Additionally, promptly file corrective declarations. If verification confirms that income was unreported or underreported, taxpayers should correct their declarations as soon as possible through the individual tax app or by visiting a tax service hall, and pay the corresponding supplementary taxes. For questions about the reminder content, call the 12366 tax service hotline for consultation.

Ignoring a tax supplement reminder may lead to multiple legal consequences.

After receiving a reminder from tax authorities, taxpayers should not assume that delaying or ignoring it will make the matter go away. Failure to file corrective declarations may result in various legal consequences.

Li Ping stated that if taxpayers fail to pay taxes within the prescribed period, late fees will continue to accumulate, causing financial losses, and they may also face case investigation and administrative penalties.

According to Article 32 of the Law of the People’s Republic of China on the Administration of Tax Collection, if a taxpayer fails to pay taxes within the prescribed period, the tax authority shall, in addition to ordering payment within a deadline, impose a daily late fee of 0.05% of the overdue tax amount from the date the tax became overdue.

Reminder: Paying taxes according to law is a constitutional obligation of citizens, and honestly completing individual income tax settlement is the legal responsibility of every taxpayer. The 2025 annual individual income tax settlement will end on June 30, 2026. Those who need to pay supplementary taxes must complete their declaration and payment before this date. Late fees for individual income tax are calculated from July 1, the day after the statutory settlement period ends, regardless of when the reminder was actually received. The longer the delay, the more late fees accumulate.

Whether or not a reminder is received, taxpayers should check their own income situation and proactively correct any errors found in their declarations. Taking the initiative to comply and promptly filing corrections is the right choice to avoid tax-related risks.

Originally published on WeChat: https://mp.weixin.qq.com/s/sGq6LWLogU05zYs-IQ05lA